Posted on 01/22/2008 6:56:41 AM PST by RDTF
NEW YORK (CNNMoney.com) -- Bank of America, stung by a $5.3 billion mortgage-related writedown, reported quarterly results Tuesday that fell short of Wall Street's expectations.
Bank of America (BAC, Fortune 500) shares fell more than 5 percent in pre-market trading on the news.
The Charlotte, N.C.-based company said its net income plunged 95 percent to $268 million, or 5 cents a share, from $5.26 billion, or $1.16 a share, a year earlier.
Revenue fell 31 percent to $12.67 billion from $18.48 billion in the 2006 period.
Those results were much worse than analysts had anticipated. The company was expected to report a profit of 18 cents a share on revenue of $13.24 billion.
The company also said it took a writedown totaling $5.28 billion on collateralized debt obligation-related assets to reflect weakened demand for the mortgage-related securities and recent credit agency downgrades.
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(Excerpt) Read more at money.cnn.com ...
They just spent 4 billion buying countrywide.
Guess we need a dim president to make AMerica right again. the media tells us we did great under the 1st Clinton, so guess that is our answer...
Wait...does “barely profitable” mean it was profitable even after all the supposed conflagration?
Agendized news 24/7/365....
Not sure about this, but I would guess some of those writedowns will eventually be reversed due to lower interest rates. In other words, the writedowns on their loan portfolios will be offset by recoveries in the value of the holdings.
It’s good that they made a profit at all.
And one of the few stocks up earlier today, Ahh the market.
I know I get a small sliver of satisfaction knowing that in a very very small way, I helped to make this happen. :)
Couldn’t have happened to a nicer bank...
BOA is reaping its just rewards for its lousy policies
and handing out credit cards to illegals.
That’s ok. See, they’re covering themselves by agreeing to provide credit cards to illegals (no soc sec # needed). So they’ll have all that new business to help offset the debt. Unless those illegals use false names and then stop paying. Who’s to say the guy who answers the door for the collection agent ACTUALLY has a card for “Frederico Vasquez” in his wallet. He claims the guy moved out 6 months ago... oh well, pass the debt on to the other customers...
This is almost like ‘92...media touts “recession,” H.W. Bush gets the blame. Country comes out of recession before the election, but nobody notices.
Clinton gets the credit.
Samo, samo.
Italics off
I bank with BOA, time to pull my money out!
Good point. We need to shut out the frenzied media at all costs. Those airhead, gutless morons foam off at the mouth and America listens like the pied piper. What a goat bolt.
Bank America treats it smaller customers like Shiite.
Try getting a short term loan for under 10,000 dollars.
The most elitist bank I have ever dealt with.
I wonder how many good folks have been forced into bankruptcy just because their credit card folks would not deal with them on late payments.
Lose a job or come down with a disease causing a person to get behind on a payment and they raise their interest rates to 35%.
These people are a great example of the kinds of money changers that Jesus threw out of the temple.
Yeah, I was wondering the same thing.
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